Accounting Policies of Suyog Telematics Ltd. Company

Mar 31, 2015

1. Company Background

SUYOG T.ELEMATICS LIMITED (the "Company") is serving Mobile Telecom
Industry as Service provider of Telecommunication Products and
Services. The Company makes available Telecommunication products such
as Telecommunications Cables, Telecommunication Panels, Diesel
Generators, Earth Strips, Batteries, Electric Power Cable, Fiber Cable
and Galvanized Poles etc. in different specifications stated by the
buyers. Having association to bring Funicular Ropeway Project to India
for the first time, the company has emerged as a prominent name in
telecommunication industry. As well, the company is a name to reckon
with when it comes to Monopole sites for telecom operators and
acquisition of special properties and Project Management. The name of
the company has been changed from Suyog Telematics Private Limited to
Suyog Telematics Limited on July 27, 2013.

The Company has issued 20,00,000 Equity Shares of INR 10 Each at INR
45/- Per Share on preferential basis to Non Promoter Group for a total
Consideration of INR 9,00,00,000/- as on Feb 10, 2015

2. Statement of Significant Accounting Policies

i. Basis of preparation of financial statements

These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under Section 211 (3C) [Companies (Accounting
Standards) Rules, 2006, as amended) and the other relevant provisions
of the Companies Act, 2013.

ii. Use of Estimates

The presentation of financial statements in conformity with the
generally accepted accounting principles require estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenue and expenses during the reported period. Differences
between the actual result and estimates are recognized in the period in
which the results are known/materialize.

iii. Cash Flow

Cash flow statement has been prepared in accordance with the "indirect
method" as explained in the Accounting Standard 3 issued by the
Institute of Chartered Accountants of India.

iv. Fixed Assets

Fixed Assets are stated at cost of acquisition less accumulated
depreciation thereon. Fixed Assets are accounted at cost of acquisition
inclusive of inward freight, duties taxes and other incidental expenses
related to acquisition and installation of Fixed Assets incurred to
bring the assets to their working condition for their intended use.

v. Depreciation

Depreciation is provided for in the books on written down value method
as per the useful life prescribed under Schedule II of the Companies
Act, 2013. Depreciation has been charged from the date of
purchases/commissioning of the assets acquired/lnstalled during the
period.

vi. Income Recognition

Revenue from the installation services is recognized on transfer of the
title as per the Contact Terms with the Customer. Revenue from
fixed-price, fixed-time frame contracts, where there is no uncertainty
as to the measurement or collectability of consideration that will be
derived on completion of the contract, is recognized as per the
percentage of completion method. Interest on deposits, Rent and
Maintenance is accounted for on the time proportion basis.

vii. Foreign Currency Translation

Foreign currency transactions are recorded in the books at exchange
rates prevailing on the date of the transaction. Exchange differences
arising on foreign exchange transactions settled during the period are
recognized as income or expense in the profit and loss account of the
same period. Foreign currency assets and liabilities are translated at
the period end rates and the resultant exchange differences, are
recognized in the profit and loss account.

viii. Borrowing Cost

Borrowing Costs that are directly attributable to the acquisition or
production of qualifying assets are capitalized as the cost of the
respective assets. Other Borrowing Costs are charged to the Profit and
Loss Account in the period in which they are incurred.

ix. Employees benefits

All employee benefit obligations payable wholly within twelve months of
the rendering the services are classified as Short Term Employee
Benefits. Such Benefits are estimated and provided for in the period in
which the employee renders the related service.

x. Inventories

Inventories are measured at lower of the cost and net realizable value.
Cost of inventories comprises all costs of purchase (net of input
credit) and other costs incurred in bringing the inventories to their
present location and condition. Costs of consumable and materials are
determined by using the First-In First-Out Method (FIFO).

xi. Investments

Investments are carried at cost. Decline in the value of long term
investments is recognized only if considered other than temporary.
Current investments are carried at the lower of cost and quoted/fair
value.

xii. Accounting for taxes on Income

a) Income tax comprises the current tax and net change in deferred tax
assets, which are made in accordance with the provisions as per the
Income Tax Act, 1961.

b) Deferred Tax resulting from timing differences between accounting
income and taxable income for the period is accounted for using the tax
rates and laws that have been enacted or substantially enacted as at
the balance sheet date. The deferred tax asset is recognized and
carried forward only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax asset can be realized.

xiii. Leased Assets

Assets acquired on leases where a significant portion of the risks and
rewards of the ownership are retained by the lessor, are classified as
Operating Leases. The rental and all other expenses of leased assets
are treated as revenue expenditure.

xiv. Provisions and Contingent Liabilities

The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.

xv. Impairment of Assets

The Company assesses at each balance sheet date whether there is any
indication that an assets may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or recoverable amount of the cash
generating unit to which the assets belongs is less than the carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as impairment loss and is recognized in the profit
and loss account. If at the balance date there is an indication that if
a previously assessed impairment loss no longer exists, the recoverable
amount is reassessed and the assets is reflected at the recoverable
amount.

xvi. Cash and cash equivalents

The Company considers all highly liquid financial instruments, which
are readily convertible into cash and have original maturities of three
months or less from the date of purchase, to be cash equivalents.